diff --git a/lib/gollum/file_view.rb b/lib/gollum/file_view.rb
index 032d6028..6474b66b 100644
--- a/lib/gollum/file_view.rb
+++ b/lib/gollum/file_view.rb
@@ -19,16 +19,15 @@ module Gollum
       %Q(  <li class="file"><a href="#{url}">#{name}</a></li>\n)
     end
 
-    def new_folder page
-      new_sub_folder ::File.dirname(page.path), page.name, page.filename_stripped
+    def new_folder folder_path
+      new_sub_folder folder_path
     end
 
-    def new_sub_folder path, name, url
+    def new_sub_folder path
       <<-HTML
       <li>
         <label>#{path}</label> <input type="checkbox" checked />
         <ol>
-          <li class="file"><a href="#{url}">#{name}</a></li>
       HTML
     end
 
@@ -62,6 +61,8 @@ module Gollum
       # If there are no folders, then we're done.
       return enclose_tree(html) if folder_start <= -1
 
+      puts "!>> folder_start = #{folder_start}, count = #{count}"
+
       # Handle special case of only one folder.
       if (count - folder_start == 1)
         page = @pages[ folder_start ]
@@ -81,6 +82,7 @@ module Gollum
 
       sorted_folders = []
       (folder_start).upto count - 1 do | index |
+        puts "!>>sorted_folders => #{@pages[ index ].path} "
         sorted_folders += [[ @pages[ index ].path, index ]]
       end
 
@@ -101,54 +103,38 @@ module Gollum
         end
       end
 
-      # Process first folder
-      page = @pages[ sorted_folders[ 0 ][1] ]
-      html += new_folder page
-
-      last_folder =  ::File.dirname page.path # define last_folder
-
       # keep track of folder depth, 0 = at root.
-      depth = 0
+      cwd_array = []
+      changed = false
 
       # process rest of folders
-      1.upto(sorted_folders.size - 1) do | index |
+      0.upto(sorted_folders.size - 1) do | index |
           page =  @pages[ sorted_folders[ index ][1] ]
           path = page.path
           folder = ::File.dirname path
 
-          if last_folder == folder
-            # same folder
-            html += new_page page
-          elsif folder.include?('/')
-            # check if we're going up or down a depth level
-            if last_folder.scan('/').size > folder.scan('/').size
-              # end tag for 1 subfolder & 1 parent folder
-              # so emit 2 end tags
-              2.times { html += end_folder; }
-              depth -= 1
-            else
-              depth += 1
-            end
+          tmp_array = folder.split('/')
 
-            # subfolder
-            html += new_sub_folder ::File.dirname(page.path).split('/').last, page.name, page.filename_stripped
-          else
-            # depth+1 because we need an additional end_folder
-            (depth+1).times { html += end_folder; }
-            depth = 0
-            # New root folder
-            html += new_folder page
+          0.upto(tmp_array.size - 1) do |index|
+                 if cwd_array[index].nil? or changed then
+                  html += new_sub_folder tmp_array[index]
+                  next
+              end
+
+              if  cwd_array[index] != tmp_array[index] then
+                  changed = true
+                  index.upto(cwd_array.size - 1) do |i|
+                      html += end_folder
+                  end
+                  html += new_sub_folder tmp_array[index]
+              end
           end
 
-          last_folder = folder
+          html += new_page page
+          cwd_array = tmp_array
+          changed = false
       end
 
-      # Process last folder's ending tags.
-      (depth+1).times {       
-        depth.times { html += end_folder; }
-        depth = 0
-      }
-
       # return the completed html
       enclose_tree html
     end # end render_files